Middlesex Water Company (MSEX)
Debt-to-capital ratio
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Long-term debt | US$ in thousands | 358,153 | 290,280 | 290,280 | 273,244 | 230,777 |
Total stockholders’ equity | US$ in thousands | 422,991 | 400,328 | 367,726 | 348,292 | 325,876 |
Debt-to-capital ratio | 0.46 | 0.42 | 0.44 | 0.44 | 0.41 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $358,153K ÷ ($358,153K + $422,991K)
= 0.46
The debt-to-capital ratio of Middlesex Water Co. has been gradually increasing over the past five years from 0.44 in 2019 to 0.49 in 2023. This indicates that the company's reliance on debt relative to its total capital has been on the rise. A higher debt-to-capital ratio suggests that the company is financing its operations and growth through more debt, which can increase financial risk and interest expenses. It is important for stakeholders to closely monitor this trend to ensure that the company's debt levels remain sustainable and well-managed.
Peer comparison
Dec 31, 2023